France Tax News





France Moldova Tax Agreement

April 2024
The 2022 double tax agreement, DTA, between France and Moldova entered into force on April 23, 2024 applying from January 1, 2025.
According to the DTA the tax withholding rates for payments of dividends will be 5%/10% depending, inter alia, on the percentage of holding in the paying company's share capital.
The tax withholding rate for payments of interest will be 5%.
For royalties the rate will be 6%.

France tax changes 2023

March 2023
The french government has increased the income tax thresholds by 5.4% in 2023.


France Colombia Tax Agreement

January 2022
The double tax agreement, DTA ,which was signed by France and Colombia will enter into force on January 1, 2023.
When in force the DTA will include 5% tax withholding rate for payments of dividends when the recipient holds at least 20% of the paying company, Otherwise the rate will be 15%.
The tax withholding rates for payment of interest will be 0%/10%.
In case of royalties the withholding rate will be 10%.

France Tax 2019

March 2019
Starting January 1, 2019 the Greek corporate income tax rate is 28% reduced from 29% in 2018.
The personal income tax rates range from 22% to 45%.
The standard VAT rate is unchanged at 24%.
There are also reduced rates of 13% and 6%.

France to Tax technology Firms

July 2019
The French parliament approved on July 25 a new tax to be imposed on US large technology firms such as Google, Apple, Facebook and Amazon for services provided in France. The planned 3% on the annual revenues is estimated to yield about EUR 500 million annually.

France Tax Reform

October 2017
According to the finance bill dated September 27, 2017 a new tax reform will affect both companies and individuals.
The French corporate income tax rate will decrease to 25% in the years 2018 to 2022.
Wealth tax will be abolished and replaced by a flat 30% capital gain tax which will be also imposed on dividends and interest.

France Singapore Tax Treaty

February 2015
France and Singapore signed on January 15, 2015 a new double tax treaty, DTA, replacing the previous 1974 tax treaty between the two countries.
When in effect the tax withholding rates according to the new treaty will be 5%/15% on dividends and 10% on interest.
Royalties will be subject to tax only in the recipient's state of residence.



New VAT Rates 2014

February 2014
Starting January 1, 2014 the standard VAT in France increased from the previous 19.6% rate to 20%.
The reduced VAT rate too increased from 7% to 10% while the super reduced rate of 5.5% remained unchanged.

France 2014 Social Security Ceilings

December 2013
According to an edict by the French government dated November 7, 2013 the social security ceilings for the year starting January 1, 2014 are EUR 37,548 for annual salaries, EUR 3,129 for monthly salaries and EUR172 for daily salaries.

France New 65% Income Tax Rate

March 2013
According to the Financial Times France plans to impose a new 65%-66% income tax on households with annual income exceeding EUR 2 million.
The new tax will replace the previously rejected proposal of imposing 75% income tax on individuals with annual income exceeding EUR 1 million.

France Proposed VAT Increase

December 2012
The French prime minister plans, starting January 1, 2014, to increase the standard VAT rate from the current 19% to 20%.
The reduced VAT rate will also increase from 7% to 10% while the super reduced VAT rate will be cut from 5.5% to 5%.

France New 75% Income Tax Rate

October 2012
According to the 2013 finance bill which was adopted on September 28, 2012 starting January 1, 2013 a new temporary 75% income tax rate will be imposed in 2013 and 2014 on annual income exceeding EUR 1 million.
The new 75% tax will not be imposed on capital gains and other investment income.



France 2012 Tax Rates

April 2012
The personal income tax rates for 2012 are progressive from 5.5% to 41% .The corporate income tax rate in France is 33.33%.
There is also a 3.3% surtax which applies to big companies whose tax liability exceeds EUR 763,000.
The standard V.A.T. rate is 19.6%. There are also reduced V.A.T. rates of 7% and 5.5%.

France New 5% Corporate Surcharge

November 2011
The French prime minister proposed on November 11 imposing of 5% surcharge on companies having an annual turnover exceeding EUR 250 million.
The new surcharge if approved by the parliament would bring the effective tax rate for rich French companies to 36.15% including basic 33.5% standard corporate tax plus 3.3% social surcharge and additional 5% surcharge if applying to the social surcharge too.

France New 2% Hotel Tax

October 2011
Starting November 1 a new 2% tax will be imposed on hotel services in France.
The new tax will apply on hotel services exceeding EUR 200 per night, before VAT of 5.5%.

France Panama Double Tax Treaty

July 2011
France and Panama signed on June 29 a double tax treaty, DTA, between the two countries.
The treaty will come into force after ratification by both countries.

France GDP up 0.6%

March 2010
The French Institute of Statistics announced on March 30, 2010 that the GDP in the fourth quarter of 2009 increased by 0.6%, following a 0.2% increase in the third quarter of 2009.

France Bank Bonuses Tax

December 2009
France has decided to impose tax on bank bonuses paid to empoloyees.The details of the French new tax, similar to the U.K banks' bonuses tax, would be presented to the French parliment at the beginning of 2010.
The German Chancellor welcomed the the imposing of the tax pointing out that banks and employees should bear the financial crisis too.

France Australia Double Taxation Treaty

June 2009
The income tax treaty which was signed by both countries in June 2006 is now in force, starting June 1, 2009.

France U.S. Protocol to Income Tax Treaty

January 2009
The U.S. and France signed on January 13, 2009 a protocol updating the current 1994 income tax treaty between the two countries.
The protocol has some significant changes to the current treaty, including, under certain terms, exemption from tax withholding of dividend and cross border royalty payments.
The protocol also rpovides for mandatory arbitration for cases not resolved by the two authorities within a specific period.
It also deals with preventing "treaty shopping", in case of inappropriate use of a tax treaty by third country residents.
For more details please see www.treas.gov.

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